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PART V |
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PERFORMANCE OF REGULATED ACTIVITIES |
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Prohibition orders |
| Prohibition orders. |
53. - (1) Subsection (2) applies if it appears to the Authority that an individual is not a fit and proper person to perform functions in relation to a regulated activity carried on by an authorised person or an exempt person.
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(2) The Authority may make an order ("a prohibition order") prohibiting the individual from performing a specified function, any function falling within a specified description or any function.
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(3) A prohibition order may relate to-
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(a) a specified regulated activity, any regulated activity falling within a specified description or all regulated activities; |
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(b) authorised persons or exempt persons generally, or to any person within a specified class of authorised person or exempt person. |
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(4) An individual who performs or agrees to perform a function in breach of a prohibition order is guilty of an offence and liable on summary conviction to a fine not exceeding level 5 on the standard scale.
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(5) An authorised or exempt person must take reasonable care to ensure that no function of his, in relation to the carrying on of a regulated activity, is performed by a person who is prohibited from performing that function by a prohibition order.
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(6) The Authority may, on the application of the individual named in a prohibition order, vary or revoke it.
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(7) "Exempt person", in relation to a regulated activity or an activity within a class of regulated activity, means a person who is exempt from the general prohibition in respect of that activity or any activity within that class.
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(8) "Specified" means specified in the prohibition order.
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| Prohibition orders: procedure and right to refer to Tribunal. |
54. - (1) If the Authority proposes to make a prohibition order it must give the individual concerned a warning notice.
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(2) The warning notice must set out the terms of the prohibition.
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(3) If the Authority decides to make a prohibition order it must give the individual concerned a decision notice.
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(4) The decision notice must-
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(a) name the individual to whom the prohibition order applies; |
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(b) set out the terms of the order; and |
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(c) be given to the individual named in the order. |
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(5) A person against whom a decision to make a prohibition order is made may refer the matter to the Tribunal.
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| Applications relating to prohibitions: procedure and right to refer to Tribunal. |
55. - (1) This section applies to an application for the variation or revocation of a prohibition order.
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(2) If the Authority decides to grant the application, it must give the applicant written notice of its decision.
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(3) If the Authority proposes to refuse the application, it must give the applicant a warning notice.
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(4) If the Authority refuses the application, it must give the applicant a decision notice.
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(5) If the application is refused, the applicant may refer the matter to the Tribunal.
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Approval |
| Approval for particular arrangements. |
56. - (1) An authorised person ("A") must ensure that no person performs a controlled function under an arrangement entered into by A in relation to the carrying on by A of a regulated activity, unless the Authority approves the performance by that person of the controlled function to which the arrangement relates.
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(2) An authorised person ("A") must take reasonable care to ensure that no person performs a controlled function under an arrangement entered into by a contractor of A in relation to the carrying on by A of a regulated activity, unless the Authority approves the performance by that person of the controlled function to which the arrangement relates.
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(3) "Controlled function" means a function of a description specified in rules.
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(4) The Authority may specify a description of function under subsection (3) only if, in relation to the carrying on of a regulated activity by an authorised person, it is satisfied that the first, second or third condition is met.
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(5) The first condition is that the function is likely to enable the person responsible for its performance to exercise a significant influence on the conduct of the authorised person's affairs, so far as relating to the regulated activity.
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(6) The second condition is that the function will involve the person performing it in dealing with customers of the authorised person in a manner substantially connected with the carrying on of the regulated activity.
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(7) The third condition is that the function will involve the person performing it in dealing with property of customers of the authorised person in a manner substantially connected with the carrying on of the regulated activity.
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(8) Neither subsection (1) nor subsection (2) applies to an arrangement which allows a person to perform a function if the question of whether he is a fit and proper person to perform the function is reserved under any of the single market directives to an authority in a country or territory outside the United Kingdom.
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(9) In determining whether the first condition is met, the Authority may take into account the likely consequences of a failure to discharge that function properly.
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(10) "Arrangement"-
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(a) means any kind of arrangement for the performance of a function of A which is entered into by A or any contractor of his with another person; and |
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(b) includes, in particular, that other person's appointment to an office, his becoming a partner or his employment (whether under a contract of service or otherwise). |
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(11) "Customer", in relation to an authorised person, means a person who is using, or who is or may be contemplating using, any of the services provided by the authorised person.
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| Applications for approval. |
57. - (1) An application for the Authority's approval under section 56 may be made by the authorised person concerned.
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(2) The application must-
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(a) be made in such manner as the Authority may direct; and |
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(b) contain, or be accompanied by, such information as the Authority may reasonably require. |
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(3) At any time after receiving the application and before determining it, the Authority may require the applicant to provide it with further information.
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(4) The Authority may require an applicant to present information which he is required to give under this section in such form, or to verify it in such a way, as the Authority may direct.
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(5) Different directions may be given, and different requirements imposed, in relation to different applications or categories of application.
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(6) "The authorised person concerned" includes a person who has applied for permission under Part IV and will be the authorised person concerned if permission is given.
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